Auditing MCQ Questions and Solutions with Explanations

51

An internal audit is watchdog of?

A) Management B) Shareholders C) Government D) Outsiders

Discuss

Answer & Solution

Answer: Option A

No explanation is given for this question. Let's Discuss on Board

52

Which of the following statement is not true?

A) A partnership firm can be appointed as a statutory auditor of limited company B) Appointment can be made in the name of the firm C) Majority of the partners should be practicing in India D) All partners should be chartered accountants

Discuss

Answer & Solution

Answer: Option C

No explanation is given for this question. Let's Discuss on Board

53

The branch auditor is appointed by:

A) Shareholders in an annual general meeting B) Shareholders in general meeting C) Board of directors in board meeting D) Any of the above

Discuss

Answer & Solution

Answer: Option B

No explanation is given for this question. Let's Discuss on Board

54

Which one of the following statement is not true?

A) An auditor is not a servant of the appointing company B) The auditor is an agent of shareholders, but they are not bound by all types of notices given to the auditor by the company C) In case a person other than a retiring auditor is to be appointed as an auditor a notice of this intention must be given to the shareholders of the company as least 10 days before the date of the General Meeting of the company D) A debtor of the company for more than Rs. 1,000 cannot be appointed auditor of the company

Discuss

Answer & Solution

Answer: Option C

No explanation is given for this question. Let's Discuss on Board

55

Audit done by the employees of the business undertaking is called . . . . . . . .

A) Final Audit B) Management Audit C) Government Audit D) Internal Audit

Discuss

Answer & Solution

Answer: Option D

No explanation is given for this question. Let's Discuss on Board

56

A company has earned profit on sale of its machine and wants to pay dividend out of it. An auditor should:

A) accept it B) not accept it C) accept under certain conditions D) none of the above

Discuss

Answer & Solution

Answer: Option B

No explanation is given for this question. Let's Discuss on Board

57

The scope of work of an internal auditor is determined by

A) Shareholders B) Management C) Government D) Law

Discuss

Answer & Solution

Answer: Option B

No explanation is given for this question. Let's Discuss on Board

58

An auditor is held criminally liable for:

A) loss to his client B) Neglect of his duty C) Offences against statutory provisions D) Frauds E) Misappropriation of cash

Discuss

Answer & Solution

Answer: Option C

No explanation is given for this question. Let's Discuss on Board

59

Which of the following is not a limitation of audit as per AAS4?

A) Objectivity of auditor's judgment B) Selective testing C) Persuasiveness of evidence D) Limitations of internal control system

Discuss

Answer & Solution

Answer: Option A

No explanation is given for this question. Let's Discuss on Board

60

Auditing, which is taken up when final accounts are ready, is called:

A) Periodical audit B) Continuous audit C) Interim audit D) Irregular audit

Discuss

Answer & Solution

Answer: Option A

No explanation is given for this question. Let's Discuss on Board

Auditing MCQ Questions and Solutions with Explanations | Commerce